McDonald’s Tests Menu Changes in Bid to Boost Profit and Improve Food Safety
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CHICAGO — McDonald’s Corp. is testing changes to its menu that include preparing much of its food elsewhere and warming it in restaurants.
Seeking to save money and, in some cases, improve food safety, the chain is switching to non-toasted buns and allowing restaurants to use pasteurized liquefied eggs rather than fresh eggs in breakfast foods.
The Oak Brook, Ill.-based company is also reportedly experimenting with precooked meat patties and pre-made pancakes that would be reheated in restaurants.
McDonald’s spokesman Chuck Ebeling denied that any wholesale changes are imminent and said many products are tested and discarded before ever reaching the market.
“There aren’t any revolutionary changes under way as we speak,” Ebeling said. “We may experimentally do just about everything at McDonald’s. We’ll experiment with fruit pizzas if we think that’s interesting to take a try at. It doesn’t mean that we’re going to be doing it broadly.”
But analysts said such moves would not be unexpected as the fast-food giant struggles to fend off growing competition.
“They said for years they would never lower their prices, and now you have value meals, so why shouldn’t they turn to precooked food after saying they wouldn’t?” said analyst Caroline Levy at Lehman Bros. Inc. in New York.
Reducing costs in construction and operations has been a priority for McDonald’s. Upstart chains such as Boston Market have made inroads, and older competitors such as Burger King have gotten smarter in marketing food.
“They’re intent on becoming much more competitive in the U.S., but they’re not the type of company that is going to take a risk,” said analyst G. Michael Kennedy at American Express Financial Corp. in Minneapolis. “I never worry about McDonald’s running off and doing something hastily.”
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